What does '8 bits equal 1 byte' signify?

The statement '8 bits equal 1 byte' signifies that a byte is a unit of digital information that typically represents a single character or letter in computer systems. Each bit is the most basic unit of data in computing and can be either a 0 or a 1. When grouped together, eight bits form a byte, which can represent 256 different values (ranging from 0 to 255 in decimal notation). This capacity allows a byte to encode a wide variety of characters, including letters, numbers, and symbols in character encoding systems like ASCII. Thus, it is clear that the concept of a byte primarily relates to the representation of individual characters within digital data processing.